Reimagining the Mobile Internet Investor Presentation November 2017 Gary Greenbaum CEO and co-founder Rahul Agarwal CTO and co-founder Contact: ir@syntonic.com Syntonic Limited (SYT.ASX) ABN 68 123 867 765
Syntonic Ltd (ASX: SYT) Corporate Snapshot Corporate Details ASX Stock Code SYT Major Shareholders (23 November 2017) Gary Greenbaum 19.92% Issued Ordinary Shares 2,355,643,546 Rahul Agarwal 19.92% Market capitalization (23-Nov-2017, undiluted) Mission Statement A$61.2 MILLION BNP Paribas Noms 1.94% Sunset Capital Mgmt 1.78% Mr Gavin J. Dunhill 1.74% Syntonic offers mobile consumers sponsored and unlimited-data subscription access to their favourite apps and content, and provides a compelling new way for content providers, sponsors, and operators to acquire, engage, and monetise customers. Citicorp Noms 1.70% Arredo Pty Ltd 1.70% Total Top 20: 58.49% Syntonic Investor Presentation (ASX: SYT) 2
Syntonic Ltd (ASX: SYT) Investment Highlights First Mover Advantage Vast Addressable Market Credible Partnerships with Global Reach Revenue Generating & Available Today Commercially deployed and generating revenue 6.1B smartphone users by 2020 Capturing market opportunity with market leaders such as Verizon Wireless and Tata Communications Broad distribution throughout the world: U.S. Southeast Asia India Latin America Syntonic Investor Update (ASX: SYT) 3
The Syntonic Executive Team Gary S. Greenbaum, Ph.D. Co-Founder, CEO 15 years of mobile leadership at Microsoft, Hutchison Whampoa, and RealNetworks Developed RealVideo, the first global streaming video codec 8 granted patents Doctorate in High Energy Particle Physics from University of California Rahul Agarwal Co-Founder, CTO A recognised expert in architecting and developing large-scale mobile client-server solutions Founder of Adroit Business Solutions, media solution enabler to the Fortune 100 Master of Computer Science graduate with multiple granted and pending patents Ben Rotholtz Chief Marketing Officer Marketing team leader with more than 20 years of experience in consumer and enterprise software Launched and sustained over 100 commercial products and services Former VP Marketing, PopCap Leadership roles at Electronic Arts, Rhapsody, Adobe and RealNetworks Syntonic Investor Presentation (ASX: SYT) 4
Board of Directors Steve Elfman Non-Executive Chairman Gary Greenbaum Managing Director Rahul Agarwal Executive Director Chris Gabriel Non-Executive Director Nigel Hennessy Non-Executive Director Former President of Sprint and Executive Managing Partner at Tap Growth Group Co-Founder and CEO Co-Founder, President and CTO Former CEO of Zain Africa and Top-100 Global Telco Influencer Recognised leader in technology commercialisation with executive and director roles Advisory Kevin Packingham Former Chief Product Officer at Samsung Telecommunications America Rudy Gadre Former VP & General Counsel at Facebook John Landau Former SVP at Tata Communications Bill Richter Former President at EMC/Isilon Storage Division Syntonic Investor Presentation (ASX: SYT) 5
Enabling mobile value-add content services: Sponsored data and and unlimited-data content-plans plans 50% of mobile subscribers would pay 10% more for unlimited access without throttled speeds or hidden costs, for only the apps they value most Matrixx infographic 2017 Syntonic Investor Presentation (ASX: SYT) 6
Transforming the mobile experience: Freeway Content Services Freeway is the first cross-carrier solution offering data-hungry consumers sponsored and paid access to mobile apps and content. Content Services: Ad Supported Data-free Promotions Pay-per-view / On-Demand Over-the-top (OTT) Subscriptions ( content plans ) Freeway Customer Experience (Cross-Carrier) Syntonic to provide UI Mobile Operator Branded Experience (powered by Freeway) Mobile Carrier Brand Targeting: Games Social Media AR/VR and other apps Syntonic Investor Presentation (ASX: SYT) 7
Freeway in Market Today ❶ ❷ ❸ Apps supporting the Freeway SDK, example: First cross-carrier, paid and sponsored, unlimited data content service Available to 140+ million U.S. subscribers Deployed in Mexico, Indonesia, India, and Malaysia Imminent expansion in other geographies including Asia Pacific, Central Europe, and Africa Large-Scale Deployment of Freeway Services Freeway available on 21.6 million smartphones (Oct, 2017) Pre-installed on 5 Android devices, expanding to 12 by end of 2017 Syntonic Investor Presentation (ASX: SYT) 8
Upcoming Product: Freeway for International Travelers Sponsored Access, Content Subscriptions, and Data Plans Sponsored Overpass Data Plans Sponsored Overpass Data Plans Sponsored Overpass Data Plans Featured > Uber Maps & Navigation FREE Unlimited Data Featured > Facebook Social $1.29 Per Day Mobile Operator 200 MB of Data $1.00 24 hours AirBnB Travel & Local Google Maps Travel & Local 25 FREE RMB Unlimited Per Day Data 20 FREE RMB Unlimited Data Per Day Google AirBnBTranslate Tools Travel & Local Weather Channel Weather 25 $.99 RMB Per Day Per Day $.99 Per Day Mobile Operator 500 MB of Data Mobile Operator 1000 MB of Data $4.99 5 days $10.00 1 week Messenger Trip Advisor Communication Travel & Local 30 FREE RMB Unlimited Per Day Data Messenger Communication $1.99 Per Day Expedia Hotels, Flights & Cars Travel & Local 25 FREE RMB Unlimited Data Per Day XE Currency Travel & Local $.49 Per Day Syntonic Investor Presentation (ASX: SYT) 9
For personal use only 2018 Market Expansion Freeway Markets 2017 Freeway Markets 2018 Deployed today in the U.S., India, Indonesia, Malaysia, and Mexico with installed base over 21 million Announced plans for Freeway deployment in China, Turkey, Vietnam and Sub-Saharan Africa, with more in pipeline to achieve 25% quarteron-quarter installed base growth Syntonic Investor Presentation (ASX: SYT) 10
Revenue A$ Estimated Millions of Installs Play Store App Ratings Delivering strong and scalable growth Three straight quarters of increasing installed base, revenue, and customer satisfaction Global Installed Base Customer Satisfaction 25 4.06 4.09 4.109 4.113 4.117 4.124 4.131 20.10 21.63 20 4.02 3.953 15 Jan-17 Mar-17 May-17 Jul-17 Sep-17 10 Quarterly Revenue 7.45 5 $281,087 $432,309 $480,382 Aug Sep-17 Oct-17 Nov-17 0 Q3 2017 Q4 2017 Q1 2018 Syntonic Investor Presentation (ASX: SYT) 11
Freeway revenue models: sponsored and paid subscription An established path to commercialisation at scale, enabled by significant growth in Syntonic s installed base Freeway Experience (Cross-Carrier) Service Cost of Revenue Revenue Source Premium Content Providers (rev share) Consumer Subscriptions (US$1-$15/month) Syntonic to provide UI Cross-carrier content subscription service, providing consumers unlimited content-plans for a specific duration Sponsored Cross-carrier consumer service providing sponsored access to specific mobile content paid for by content providers and brands Mobile Operators (wholesale data US$.50 $10/GB OR carrier rev share) Mobile Operators (wholesale data US$.50 $10/GB OR carrier rev share) App Publishers & Brands (acquisition & engagement performance marketing: revenue per install and action) Syntonic Investor Presentation (ASX: SYT) 12
Freeway revenue model from mobile operators Mobile Operator Branded Experience (powered by Freeway) Mobile Carrier Brand Syntonic helps operators to build network value with new ways to monetise consumers, grow ARPUs, deepen consumer relationships and increase loyalty. Recurring Fees Device Royalties Volume pricing based on active units/month Maintenance Support Fixed percentage of monthly invoiced fees and royalties Hosting Fees Optional hosting across Syntonic s global network of data centers Syntonic Investor Presentation (ASX: SYT) 13
Content Recent Offers Premium Content Partners Syntonic Investor Presentation (ASX: SYT) 14
Case Study Freeway Status Icon It s easier to acquire, engage, and monetise a connected consumer Freeway by Syntonic empowered Expedia to provide its consumers with frictionless worldwide travel services. Freeway Notification David Doctorow, Expedia s senior vice president of global marketing, said paying for data helps the site connect with its users, particularly when they are traveling and more likely to be sensitive about data usage. Wall Street Journal Syntonic Investor Presentation (ASX: SYT) 15
Syntonic Emerging Business Verticals Split Mobile Billing Cost-effective solution for enterprises deploying bringyour-down-device (BYOD) for mobile employees 50%+ reduction of corporate mobile costs 10%+ enhancement of workforce productivity Enhanced corporate security with employee usage analytics Data Mining app level usage analytics for enhancing ad targeting and predictive risk assessment Granular Policy and Charging Parental controls, per-stream Quality-of-Service, off-peak pricing, content geo-fencing Tapping into the US$3.49b market for data mining and collection. Source: Zion Market Research, Jan 2017. Syntonic Investor Presentation (ASX: SYT) 16
Ability to execute Competitive Landscape high low high low Completeness of mobile solution Syntonic Investor Presentation (ASX: SYT) 17
2018 Outlook Freeway 2018 Market Expansion Syntonic Investor Presentation (ASX: SYT) 18
Disclaimer This presentation does not constitute or form part of any offer to sell, or solicitation of any offer to buy, any securities in the United States or any other country. This presentation may not form the basis of any contract or commitment whatsoever with any person. Distribution of this presentation may be restricted by applicable law. In particular, only persons in the United States who are qualified institutional buyers (as defined in Rule 144A under the US Securities Act of 1933) may receive this presentation. This presentation has been prepared by Syntonic Limited ( Syntonic ) as a summary only, and does not contain all information about Syntonic s assets and liabilities, financial position and performance, profits and losses, prospects, and the rights and liabilities attaching to Syntonic or Syntonic s securities. Any investment in Syntonic should be considered speculative and there is no guarantee that they will make a return on capital invested, that dividends would be paid, or that there will be an increase in the value of the investment in the future. Some of the statements contained in this report are forward looking statements. Forward looking statements include but are not limited to, statements concerning Syntonic s business plans, expected costs, and expected revenues, and other statements which are not historical facts. When used in this presentation, and in other published information of Syntonic, the words such as aim, could, estimate, expect, intend, may, potential, should and similar expressions are forward-looking statements. Although Syntonic believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Syntonic Investor Presentation (ASX: SYT) 19
For Further Information Please contact: Syntonic Investor Relations E: ir@syntonic.com Syntonic (USA) 119 First Ave, Suite 100 Seattle, WA 98104 Syntonic Limited (Australia) 945 Wellington Street West Perth, WA 6005 www.syntonic.com Syntonic Investor Presentation (ASX: SYT) 20